Daelim

"South Korea’s Daelim Industrial said on Friday that a contract worth 2.23 trillion won ($2.08 billion) for a refinery project in Iran was canceled.

The order was canceled as the Esfahan Refinery Upgrading Project failed to procure financing because of economic sanctions imposed on Iran, Daelim said in a regulatory filing." (June 1, 2018).

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"South Korea's construction giant Daelim Industrial Company said work is in full swing at the Isfahan Oil Refinery project site in Iran, and on track for completion by the end of 2020. The plant currently meet about 22 per cent of Iran's demand for oil products with a capacity to process 375,000 barrels per day of oil, according to Shana. The South Koreans have undertaken to provide E1.9 billion ($2.27 billion) for improving and optimizing facilities at Isfahan Oil Refinery, stated the report citing Alireza Arman Moqadam of National Iranian Oil Refining and Distribution Company. The project, which kicked off last December, is likely to be completed by the end of 2020." (December 31, 2017).

"Daelim Industrial Co., a major construction firm in South Korea, said on December 29 that it has received a letter of award (LOA) from Iran’s Esfahan Oil Refining Co. (EORC) to improve oil refinery facilities. The deal, which is worth 2.3 trillion won (US$2.0 billion), is the largest contract secured by a domestic construction company in Iran. The project is to add facilities that will be used to produce high value-added products to the oil refinery in Isfahan, located 400 kilometers south of Tehran, the capital of Iran. Under the deal to be officially signed in January 2017, Daelim Industrial will be in charge of design, equipment and material procurement, construction and financing. Construction will take 48 months after groundbreaking." (BusinessKorea, "Daelim Wins $2B Construction Deal in Iran," 12/29/2016).

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The National Iranian Oil Company and South Korea's Daelim Industrial Co. have signed a memorandum of understanding, worth $4 billion, on upgrading the Isfahan Oil Refinery. The document calls for reducing the refinery's input of feedstock by 16,000 barrels per day, lowering mazut output by 10 million liters a day with the help of advanced technology as well as boosting daily gasoline production by 8.5 million liters, Mehr News Agency reported. (July 21, 2016).

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Company website lists operations in Iran as part of global network. (Company Website)

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“Korean construction firms are paying attention to Iran, the fourth largest client in the global construction market. Responding to the lifting of sanctions against Iran, they are taking swift actions, such as strengthening market survey and preparing to enter the market…Korean construction firms are taking actions behind the curtains while watching international political situations. Hyundai E&C and Daelim, two major constructors in Korea, have operated a local office in Tehran where Korean and Iranian employees work together in order to re-enter the Iranian market at some point. An official from a large construction firm said, ‘Since gaining trust from a client is very important in the Middle East, Korean construction firms have maintained relationships (with Iranian clients) even after sanctions.’ Kwon Myeong-gwang, an ICAK manager in charge of Iran and Kuwait markets, said, ‘Iran is a big market, and projects that couldn’t be embarked on due to economic sanctions may come to the market all at once,’ adding, ‘Construction of oil and gas facilities is promising.’” (The Dong-A Ilbo, “Will thawing sanctions against Iran boost construction business?” 2/2/14)

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"Daelim Industrial Co had a nearly $1.5 million U.S. government contract to build family housing at a military base in South Korea at some point between mid-2011 and late 2012, the General Accountability Office said in a report on Monday. The GAO is the investigative arm of Congress... Such companies should also be denied contracts with the U.S. government, it says. The GAO did not say how much Daelim's investments in Iranian energy were worth... Daelim was one of at least seven companies from China, India, South Korea and South Africa that continued to have investments in Iran in 2012, the GAO said in December, in a report required by a U.S. sanctions law. A Daelim spokesman in Seoul said the company was simply completing a construction project in Iran that predated the U.S. sanctions. He added that the building contract did not constitute an investment in Iran's energy sector, as stipulated in the U.S. sanctions law, and that Daelim had not signed any new contracts in the Islamic Republic since 2010. Daelim, which the GAO said had helped to develop Iran's South Pars gas fields and a liquefied natural gas project in Tombak, was the only one of the companies found also to hold a contract with the U.S. government, the GAO said on Monday." (Reuters, "South Korea firm had U.S. contract while investing in Iran gas: GAO," 2/26/2013)

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"Daelim, a South Korean engineering and construction giant, has been active in Iran since 1975, building refineries, as well as natural gas and power plants. In 2007, it signed a refinery deal worth $700 million to the company. And in 2009, Daelim struck a deal worth $600 million to the company to help Iran develop a phase of the South Pars gas fields, a spokesperson confirmed. While doing business in Iran, it has won contracts from the United States, including a $111 million contract awarded last year to build family housing towers for the Army. The Iran Sanctions Act prohibits investments above $20 million in a given year in Iran's energy sector. Investments are defined as deals in which a company purchases shares or enters into a contract that provides for royalty payments. But investments also are defined as deals in which a company enters into a contract that includes responsibility for the development of petroleum resources, which is what landed Daelim on a list of potential Iran Sanctions Act violators put together by the Congressional Research Service. In a statement, the company said that it had disputed the listing and did believe its construction work in Iran met the law's criteria. 'Based on our review, we never did anything that violated the law and we never did any investment in Iran,' the company said." The company has received $174 million from the US government for their business in Iran during 2000-2009. Their investments are currently active in Iran, and the company has been listed by the New York Times as a possible violator of the Iran Sanctions Act. (The New York Times, "Profiting from Iran, and the US," 3/6/2010)